AUDIT REPORT ON THE ACCOUNTS OF DISTRICT GOVERNMENT KHUSHAB

AUDIT YEAR 2017-18

AUDITOR GENERAL OF PAKISTAN

TABLE OF CONTENTS

ABBREVIATIONS & ACRONYMS...... i PREFACE ...... ii EXECUTIVE SUMMARY...... iii SUMMARY TABLES AND CHARTS ...... vii Table 1: Audit Work Statistics ...... vii Table 2: Audit observation regarding Financial Management .... vii Table 3: Outcome Statistics ...... vii Table 4: Irregularities Pointed Out ...... viii Table 5: Cost-Benefit ...... viii CHAPTER-1 ...... 1 1.1 District Government, Khushab ...... 1 1.1.1 Introduction of Departments ...... 1 1.1.2 Comments on Budget and Accounts (Variance Analysis) ...... 1 1.1.3 Brief comments on the status of MFDAC Audit Paras of Audit Report 2016-17 ...... 3 1.1.4 Brief comments on the status of compliance with PAC Directives ...... 3 1.2 AUDIT PARAS ...... 5 1.2.1 Non Production of Record ...... 6 1.2.2 Irregularities / Non-compliance...... 7 1.2.3 Internal Control Weaknesses ...... 14 1.2.4 Performance ...... 24 ANNEXURES ...... 25 Annexure-A ...... 26 Annexure-B ...... 39 Annexure-C ...... 40 Annexure-D ...... 42 Annexure-E ...... 43

Annexure-F...... 44 Annexure-G ...... 48 Annexure-H ...... 49 Annexure-I ...... 50

ABBREVIATIONS & ACRONYMS

ACL Audit Command Language AIR Audit & Inspection Report DAC Departmental Accounts Committee DDO Drawing & Disbursing Officer DCO District Coordination Officer DO District Officer DHQ District Headquarter DTL Drug Testing Laboratory EDO Executive District Officer FCR Final Completion Report F&P Finance and Planning HSRP Health Sector Reforms Programme LP Local Purchase MFDAC Memorandum for Departmental Accounts Committee MRS Market Rate System MS Medical Superintendent SMO Senior Medical Officer TST Triple Surface Treatment NAM New Accounting Model OFWM On Farm Water Management PAC Public Accounts Committee PAO Principal Accounting Officer PCC Pakka Cement Concert PFR Punjab Financial Rules PLGO Punjab Local Governments Ordinance POL Petroleum Oil & Lubricants PPRA Punjab Procurement Regulatory Authority RHC Rural Health Centre SDA Special Deposit Account THQ Tehsil Headquarter WUA Water User Association

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PREFACE Articles 169 and 170 of the Constitution of the Islamic Republic of Pakistan, 1973 read with Sections 8 and 12 of the Auditor General (Functions, Powers and Terms and Conditions of Service) Ordinance, 2001 and Section 115 of the Punjab Local Government Ordinance, 2001 require the Auditor General of Pakistan to audit the accounts of the Provincial Governments and the accounts of any authority or body established by, or under the control of, the Provincial Government. Accordingly, the Audit of all Receipts and Expenditures of the District Government Fund and Public Account of District Government is the responsibility of the Auditor General of Pakistan. The report is based on audit of the accounts of various offices of the District Government, Khushab for the Financial Year 2016-17. The Directorate General of Audit District Governments, Punjab (North), Lahore, conducted audit during 2017-18 on test check basis with a view to reporting significant findings to the relevant stakeholders. The main body of the Audit Report includes only the systemic issues and significant audit findings. Relatively less significant issues are listed in the Annexure-A of the Audit Report. The Audit observations listed in the Annexure-A shall be pursued with the Principal Accounting Officer at the DAC level and in all cases where the PAO does not initiate appropriate action, the Audit observation will be brought to the notice of the Public Accounts Committee through the next year’s Audit Report. The audit results indicate the need for adherence to the regularity framework besides instituting and strengthening internal controls to prevent recurrence of such violations and irregularities. The observations included in this Report have been finalized after discussion of Audit paras with the management. However, no Departmental Accounts Committee meeting by PAO was convened despite repeated requests. The Audit Report is submitted to the Governor of the Punjab in pursuance of Article 171 of the Constitution of the Islamic Republic of Pakistan, 1973 to cause it to be laid before the Provincial Assembly of Punjab.

Islamabad (Javaid Jehangir) Dated: Auditor General of Pakistan ii

EXECUTIVE SUMMARY The Directorate General Audit, District Governments, Punjab (North), Lahore, is responsible to carry out the Audit of District Governments, Tehsil / Town Municipal Administrations and Union Administrations of three City District Governments and sixteen District Governments. Its Regional Directorate of Audit, Sargodha has audit jurisdiction of District Governments, TMAs and UAs of four District Governments i.e. Sargodha, Khushab, Mianwali and Bhakkar. The Regional Directorate has a human resource of 11 officers and staff, total 2,739 man days and the annual budget of Rs 14.220 million for the Financial Year 2017-18. It has mandate to conduct Financial Attest Audit, Regularity Audit and Compliance with Authority & Performance Audit of entire expenditure including programmes / projects & receipts. Accordingly, RDA Sargodha carried out Audit of accounts of District Government Sargodha for the Financial Year 2016-17. The District Government, Khushab conducts its operations under Punjab Local Government Ordinance, 2001. It comprises one Principal Accounting Officer (PAO) i.e. the District Coordination Officer (DCO) covering six groups of offices i.e. Agriculture, Community Development, Education, Finance & Planning, Health and Works & Services. The financial provisions of the Punjab Local Government Ordinance, 2001 require the establishment of District Government Fund comprising Local Government Fund and Public Account for which Annual Budget Statement is authorized by the Nazim / Council / Administrator in the form of budgetary grants. Audit of District Government, Khushab was carried out with a view to ascertaining whether the expenditure was incurred with proper authorization, in conformity with laws / rules / regulations for economical procurement of assets and hiring of services etc. Audit of receipts / revenues was also conducted to verify whether the assessment, collection, reconciliation and allocation of revenues were made in accordance with laws / rules, resulting in no leakage of revenue.

iii a. Scope of Audit Out of total auditable expenditure of Rs 2,699.591 million of the District Government, Khushab for the Financial Year 2016-17 covering one PAO and 134 formations, the Regional Directorate of Audit, audited an expenditure of Rs 755.885 million which, in terms of percentage, was 28% of auditable expenditure. The RDA planned and executed audit of 35 formations i.e. 100% achievement against the planned audit activities. Total receipts of the District Government, Khushab for the Financial Year 2016-17, were Rs 4.351 million, whereas, RDA audited receipts of Rs 1.697 million which was 37% of total receipts. b. Recoveries at the Instance of Audit Recovery of Rs 62.055 million was pointed out, which was not in the notice of executive before audit. However, no recovery was affected till compilation of this report. c. Audit Methodology The audit year 2017-18 witnessed intensive application of desk audit techniques in this directorate. This was facilitated by access to live SAP/R3 data, internet facility, and availability of permanent files. Desk review helped auditors in understanding the systems, procedures, and environment, and the audited entity before starting field activity. This greatly facilitated in the identification of high risk areas for substantive testing in the field. d. Audit Impact A number of improvements have been initiated by the concerned department, as suggested by audit, maintenance of record and procedures have been initiated by the concerned departments, however, audit impact in shape of change in rules has been less materialized due to non-convening of regular PAC meetings. Had PAC meetings been regularly convened, audit impact would have been manifold.

iv e. Comments on Internal Control and Internal Audit Department Internal control mechanism of District Government, Khushab was not found satisfactory during audit. Many instances of weak Internal Controls have been highlighted during the course of audit which includes some serious lapses like withdrawal of public funds against the entitlement of employees. Negligence on the part of District Government authorities may be captioned as one of important reasons for weak Internal Controls. Section 115-A (1) of PLGO, 2001 empowers Nazim of each District Government to appoint an Internal Auditor but the same was not appointed in District Government, Khushab. f. The Key Audit Findings of the Report i. Non-production of record of Rs 5.500 million was noted in one case1 ii. Irregularity and Non-compliance of rules and regulations amounting to Rs 96.074 million was noted in six cases2. iii. Weaknesses in internal controls have been noted in three cases involving an amount of Rs 16.709 million3. iv. Recoveries of Rs 62.055 million were pointed out in thirteen cases4. v. Non recovery of Rs 1.507 million due to poor performance was noted in one case5

1 Para : 1.2.1.1 2 Para: 1.2.2.1-1.2.2.2, 1.2.2.5-1.2.2.8 3 Para: 1.2.2.3, 1.2.2.4, 1.2.2.9 4 Para: 1.2.3.1-1.2.3.8, 1.2.3.10-1.2.3.14 5 Para: 1.2.4.1 v g. Recommendations Head of the District Government needs: i. To take appropriate action for non-production of record. ii. To adhere Public Procurement Rules for economical and rational purchases of goods and services in transparent manner. iii. To hold inquiries to fix responsibility for non-recovery of overpayment, misappropriation of public funds, unauthorized and irregular expenditure. iv. To conduct physical stock taking of fixed and current assets on regular basis.

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SUMMARY TABLES AND CHARTS

Table 1: Audit Work Statistics Rs in million Sr. Description No. Budget No. 1 Total Entities (PAOs) in Audit Jurisdiction 01 5,082.209 2 Total Formations in Audit Jurisdiction 134 5,082.209 3 Total Entities (PAOs) Audited 01 5,082.209 4 Total Formations Audited 35 824.614 5 Audit & Inspection Reports 35 824.614 6 Special Audit Reports - - 7 Performance Audit Reports - - 8 Other Reports - -

Table 2: Audit observation regarding Financial Management Rs in million Sr. Amount Placed under Audit Description No. Observation 1 Unsound asset management - 2 Weak financial management 62.055 Weak internal controls relating 3 16.709 to financial management 4 Violation of rules 96.074 5 Others 7.004 TOTAL 181.842

Table 3: Outcome Statistics Rs in million Expenditure Total Sr. on Acquiring Civil Total last Description Receipts Others current No of Physical Works year Assets year (Procurement) Outlays 1 - 176.276 4.351 2520.661 2,701.288* 1,454.964 audited Amount placed under 2 audit - 137.162 - 44.680 181.842 523.838 observation / irregularities Recoveries pointed out at 3 - 36.007 - 26.048 62.055 43.390 the instance of audit vii

Expenditure on Acquiring Total Sr. Civil Total last Description Receipts Others current No of Physical Works year Assets year (Procurement) Recoveries accepted / 4 established at - - - - - the instance of audit Recoveries realized at the 5 - - - - - instance of audit *The amount in serial No.1 column of “Total Current Year” is the sum of Expenditure and Receipts whereas the total expenditure for the current year was Rs 2,699.591 million. Table 4: Irregularities Pointed Out Rs in million Amount Placed Sr. Description under Audit No. Observations Violation of rules and regulations and principles of propriety 1 96.074 and probity in public operations. Reported cases of fraud, embezzlement, theft, and misuse of 2 0 public resources. Accounting Errors (accounting policy departure from NAM6, misclassification, over or understatement of account balances) 3 0 that are significant but are not material enough to result in the qualification of audit opinions on the financial statements. 4 Quantification of weaknesses of internal control system. 16.709 Recoveries and overpayment, representing cases of 5 establishment overpayment or misappropriation of public 62.055 money. 6 Non-production of record 5.500 7 Others, including cases of accidents, negligence etc. 1.504 TOTAL 181.842

Table 5: Cost-Benefit Rs in million Sr. No Description Amount 1 Outlays Audited (Item 1of Table 3) 2,701.288 2 Expenditure on Audit 1.777 3 Recoveries realized at the instance of Audit - 4 Cost Benefit Ratio -

6 The Accounting Policies and Procedures Prescribed by the Auditor General. viii

CHAPTER-1 1.1 District Government, Khushab 1.1.1 Introduction of Departments As per Punjab Local Government Ordinance 2001, the activities of District Government are managed under the administrative control of a DCO who acts as a PAO assisted by EDOs distributing the work among the officers, branches and / or sections of each District Office. Following is the list of Departments, which manage the activities of District Government: 1. District Coordination Officer 2. Executive District Officer (Agriculture) 3. Executive District Officer (Community Development) 4. Executive District Officer (Education) 5. Executive District Officer (Finance & Planning) 6. Executive District Officer (Health) 7. Executive District Officer (Works & Services) Under Section 29(k) of the PLGO 2001, Executive District Officer (EDO) acts as Departmental Accounting Officer for his respective group of offices. 1.1.2 Comments on Budget and Accounts (Variance Analysis) During Financial Year 2016-17 budgetary allocation (inclusive salary, non-salary and development) for District Government Khushab was Rs 5,082.210 million whereas the expenditure incurred (inclusive salary, non-salary and development) during Financial Year was Rs 2,699.591 million, showing a saving of Rs 2,382.619 million for the Financial Year 2016-17, which in terms of percentage was 47% of final budget as detailed below: Rs in million %age of FY: 2015-16 Budget Expenditure (-) Saving Saving Salary 4430.628 2,403.476 (-)2027.152 46 Non Salary 385.698 119.839 (-)265.859 69 Development 265.884 176.276 (-)89.608 34 Total 5,082.210 2,699.591 2,382.619 47

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Rs in million

As per Appropriation Accounts 2016-17 of District Khushab, the original budget was Rs 5,057.085 million, Supplementary Grant was Rs 25.125 million and final budget was Rs 5,082.210 million. Against the final budget, District Government, Khushab incurred total expenditures of Rs 2,699.591 million during 2016-17. The Salary, Non-salary and Development Expenditure comprised 89%, 4% and 7% of the total expenditure, respectively. Rs in million

The comparative analysis of the budget and expenditure of current and previous Financial Years showed that there was 24% decrease in 2

Budget Allocation and 74% decrease in expenditure respectively as compared to previous Financial Year. Rs in million

1.1.3 Brief comments on the status of MFDAC Audit Paras of Audit Report 2016-17 Audit paras reported in MFDAC of last year audit report which have not been attended in accordance with the directives of DAC have been reported in Part-II of Annexure-A. 1.1.4 Brief comments on the status of compliance with PAC Directives The audit reports pertaining to following years were submitted to the Governor of the Punjab: Status of Previous Audit Reports Sr. Audit Year No. of Paras Status of PAC Meetings No. 1 2002-03 25 Not convened 2 2003-04 28 Not convened 3 2004-05 20 Not convened 4 2005-08 F.Y (Special Audit) 155 Not convened 5 2009-10 32 Not convened 6 2010-11 20 Not convened 7 2011-12 24 Not convened 8 2012-13 17 Not convened 3

Sr. Audit Year No. of Paras Status of PAC Meetings No. 9 2013-14 16 Not convened 10 2014-15 24 Not convened 11 2015-16 18 Not convened 12 2016-17 26 Not convened

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1.2 AUDIT PARAS

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1.2.1 Non Production of Record 1.2.1.1 Non production of record – Rs 5.500 million According to Section 14(1,2 & 3) of Auditor General’s Functions, Powers and Terms and Conditions of Service, Ordinance, 2001, the Auditor-General shall conduct audit of the departments under of the control of the of Federation and of a Province and all authorities established there under. The officer in-charge of any office or department shall afford all facilities and provide record for audit inspection. Further, any person or authority hindering the auditorial functions of the Auditor General regarding inspection of accounts shall personally be responsible and dealt with under relevant Efficiency and Discipline Rules. Medical Superintendent DHQ Hospital Khushab did not produce record pertaining to the Financial Year 2016-17, for audit verification. In the absence of record, authenticity, validity, accuracy and genuineness of expenditure of Rs 5.500 million could not be verified. Detail is as under: 1. Cash book 2015-16 2. Budget registers 3. Details of income of parking stands and canteen 4. Log books of the vehicles from 1-07-2016 to 31-12-2016 5. Consumable stock registers 6. Reconciled expenditure statements 7. Leave records 8. Details of the deposit challans 9. Recruitment procedure of daily wages employees Audit held that due to weak financial discipline and internal controls, relevant record was not produced to audit in violation of criteria ibid. This resulted in unauthentic expenditure of Rs 5.500 million. The matter was reported PAO/DC in September 2017 but neither reply was submitted nor DAC meeting was convened till finalization of this report. Audit recommends fixing responsibility for non-production besides production of record to audit for the fulfillment of statutory provisions. [PDP No.46]

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1.2.2 Irregularities / Non-compliance 1.2.2.1 Irregular payment without compulsory tests reports – Rs 73.314 million According to additional clause 9 of contract agreement, the contractor is bound to set up field control laboratory at site of work along with necessary equipments and logistics to carry out compaction tests for earthwork, sub base and base course and other tests like gradation control tests for sub base and surfacing. DO Roads executed development schemes under SDA Account of the DCO, during the Financial Year 2016-17. The department paid a huge amount of Rs 73.314 million on account of sub-base course and base course without compulsory tests reports. Besides, following irregularities were also noticed: a) Entry regarding compaction of base sub base as well as on berms was not available in the MB. b) Compaction test of sub base & base course was not available. c) Gradation of material for sub base, base course and TST was also not available. d) Quality of bituminous course / TST was not carried out. e) Sample of bajri (stone) used as sub base course and base course was not got approved from the concerned authority as required under contract agreement. f) Strength test report of the stone was also not available g) Quality test of PCC was not done.

Name of Contractors Qty Amount Bill # Description Rate work Name Cft/Sft (Rs) P/L Base 474300 5306.77 25,170,010 Rehabilitation C.C 9th Course M/s Shadab of road from & T.S.T 775928 4700 36,468,616 Constructio Naushehra to Running T.S.T 142000 4700 6,674,000 n Company Uchali road bill D.S.T 65600 2363.11 1,550,200 P.C.C 19498 17700 3,451,146 Total 73,313,972 Audit held that due to weak internal controls the expenditure was incurred without mandatory tests. This resulted in an irregular expenditure of Rs 73.314 million.

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The matter was reported to the PAO / DC in September, 2017 but no reply was furnished. Despite repeated requests, DAC meeting was not convened till the finalization of this Report. Audit recommends probe into the matter for fixing responsibility against the persons at fault. [PDP No. 3] 1.2.2.2 Irregular payment to water user’s association without obtaining FCR – Rs 17.137 million According to D.G. Agriculture, Water Management Punjab, Lahore letter No.35480 dated 13-10-2005, the funds will be released to WUA in three installments as prescribed and every installment will be released after certification the completion of the works by the PWMC. DO (OFWM) made payment of Rs 17.137 million to the water user associations, on account of 12 water courses, during Financial Year 2016-17 without obtaining certification regarding completio of work, of Punjab Water Management Consultants as detailed below: Sr. No. Water Course No. Total area in meters Material Cost (Rs) 1 16880/L 934 1,771,390 2 14400/L 721 1,357,417 3 11985/R 1,233 2,023,910 4 13485/R 907 1,649,386 5 48200/R 915 1,553,942 6 11000/R 636 1,087,912 7 77300/L 1,091 1,717,850 8 30500/L 485 793,106 9 500/L 812 1,645,590 10 88319/L 925 1,378,315 11 74950/R 589 955,346 12 12208/L 564 1,203,255 Total 17,137,419 Audit is of the view that due to weak internal controls, the payments were made without assurance regarding completion of work. This resulted in an irregular payment of Rs 17.137 million. The matter was reported to the PAO / DC in September, 2017 but no reply was furnished. Despite repeated requests, DAC meeting was not convened till the finalization of this Report. Audit recommends certification of the schemes involved in the para besides fixing responsibility for making payment without mandatory FCR. [PDP No.05] 8

1.2.2.3 Doubtful expenditure on account of dismantling and reconstruction of foundation of wall – Rs 10.709 million According to rule 2.33 of PFR Vol-I, every government servant should fully realize that he will be held personally responsible for any loss sustained by government through fraud or negligence. District Officer (Buildings) incurred an expenditure of Rs 10.709 million for the dismantling of foundation of boundary walls of various premises and reconstruction without any cogent justification, as dismantling of foundation of boundary walls was not found during physical verification by Audit. Annexure-B Audit is of the view that due to weak administrative controls and financial indiscipline cost of dismantling and reconstruction of foundation under boundary wall was charged. This resulted in an irregular expenditure of Rs 10.709 million. The matter was reported to the PAO / DC in September, 2017 but no reply was furnished. Despite repeated reminders, DAC meeting was not convened till the finalization of this Report. Audit recommends probe into the matter, action against the persons at fault besides effecting of consequent recovery. [PDP No.8] 1.2.2.4 Loss to government due to irregular auction of kanhatti garden - Rs 5 millions According to rule 2.10(a) of PFR Vol-I, same vigilance should be exercised in respect of expenditure incurred from government revenues as a person of ordinary prudence would exercise in respect of the expenditure from his own money. District Officer (Agriculture) Extension auctioned the Kanhatti Garden comprising upon 20 acre cultivated area and 8 acre garden @ Rs 530,000 per annum without proper assessment of yield of land and production of the garden. Further, as per report of Agriculture Officer, besides garden, the tenant is also cultivating 57 acres area beyond the permissible limit of 20 acres. On the other hand the management incurred an expenditure of Rs 809,240 on account of fertilizer, plants & pesticides beside POL charges / repair of tractors of Rs 231,083. Following irregularities were also noticed:

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i. Neither auctioned was uploaded on PPRA website nor in the newspapers. ii. Prescribed procedure of auction was not followed. iii. Garden was auctioned without the approval of the competent authority i.e. EDO (Agriculture). iv. No proper record of fruit trees and yields per year of the garden was found in record. v. Assessment committee did not consider the crops production of cultivated area of 28 acre of two seasons for assessment of reserve price. It is important to mention here that a local farmer named Mr. Allah Bukhsh S/O Muhammad Yar got first prize of 85-HP tractor by producing 98.78 maunds per acre wheat production in District Khushab during 2016-17. On the other hand, agriculture department Khushab auctioned 28 acres, including garden at 8 acres, cultivated land merely in Rs 530,000 without considering the production of local farmer. Audit held that due to weak managerial controls and financial indiscipline Kanhatti garden was leased out at lesser rates. Further, neither the department took appropriate action against the tenant who is cultivating over and above the permissible area / land nor imposed and effect any penalty from him. This resulted in a loss of Rs 5 million to the government. Audit recommends investigation at appropriate level besides fixing of reasonability against the person (s) at fault and recovery consequential loss. [PDP No.01] 1.2.2.5 Irregular expenditure on procurements – Rs 2.216 million According to rule 12 of PPRA rules 2014, a procuring agency shall advertise procurement of more than one hundred thousand rupees and up to the limit of two million rupees on the website of the Authority in the manner and format specified by regulations but if deemed in public interest, the procuring agency may also advertise the procurement in at least one national daily newspaper. DDOs of the following formations incurred an expenditure of Rs 2.216 million for the procurement of store items during the Financial

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Year 2016-17. The formations neither advertise the procurement on website nor in any National Daily Newspaper. (Rs in million) Sr. PDP Formation Description Amount No. No. 1 MS THQ Hospital Noshera 37 Medical Equipment 1.182 2 MS THQ Hospital Khushab 27 Cost of other store 0.225 3 DO (Agri) Ext. Khushab 02 Fertilizer, pesticide and seed 0.809 Total 2.216 Audit held that due to weak financial discipline the expenditure was incurred without fulfilling legal formalities. This resulted in an irregular expenditure of Rs 2.216 million. The matter was reported to the PAO / DC in September, 2017 but no reply was furnished. Despite repeated requests, DAC meeting was not convened till the finalization of this Report. Audit recommends regularization of the expenditure. 1.2.2.6 Irregular purchase of LP medicines – Rs 1.315 million As per letter No.AAC/HD/1-42/94 (P) dated 14-4-1998 of Health Deptt. Govt. of Punjab, para No.09, LP medicines shall be purchased on day to day basis on the rate contract through PPRA with the local medical store/supplier on discount ranging from 8 to 12%. District Officer Health incurred an expenditure of Rs 1.315 million for the purchase of LP medicines during 2016-17. Neither purchases were made on daily basis nor the open tender procedure adopted. Further, the department did not avail permissible discount as per criteria ibid. Detail is as under: Cheque No Date LP Item Supplier Amount (Rs) 6653 19.09.16 Tab. Ibuprofen MS Hassan Pharma 200,000 6652 22.09.16 Syp. Kotri 50ML MS Hassan Pharma 125,000 6654 22.09.16 Amoxicillin 500Mg MS Hassan Pharma 175,000 3114425 26.09.16 LP Medicines Arslan Medical 240,000 3114425 26.10.16 LP Medicines Arslan Medical 260,000 3114428 10.10.16 LP Medicines Hassan Pharma 158,600 6658 22.09.16 Inj. Magnesium Sulphate MS Hassan Pharma 5,000 6659 22.09.16 Inj. Pheneramin MS Hassan Pharma 50,000 6655 22.09.16 Inj. Transamin MS Hassan Pharma 35,000 6657 22.09.16 Inj. Hydrocortisone 250mg MS Hassan Pharma 66,000 Total 1,314,600 Audit held that due to weak financial controls, expenditure was incurred in violation to the government instructions. 11

This resulted in an irregular expenditure of Rs 1.315 million. The matter was reported to the PAO / DC in September, 2017 but no reply was furnished. Despite repeated requests, DAC meeting was not convened till the finalization of this Report. Audit recommends regularization of the expenditure and recovery of un-availed discount from the persons at fault. [PDP No.30] 1.2.2.7 Irregular drawl of pay & allowances – Rs 1.128 million As per government of the Punjab Finance Department No.FD.SR 4-8-1/76 (Prov.) dated 16-03-1988, shifting of head quarter of a government servant for the period exceeding three months is a financial irregularity. Senior Medical Officer RHC Mitha Tiwana made payment of Rs 1.128 million of pay & allowances to Dr. Wifa WMO, performing duties at other office instead of actual place of posting for three years. Audit is of the view that due to weak managerial controls salaries were disbursed in violation of government instructions. This resulted in an irregular payment of pay & allowances of Rs 1.128 million. The matter was reported to the PAO / DC in September, 2017 but no reply was furnished. Despite repeated requests, DAC meeting was not convened till the finalization of this Report. Audit recommends inquiry besides fixing of responsibility against the person (s) at fault. [PDP No.14] 1.2.2.8 Irregular expenditure due to misclassification – Rs 0.964 million According to Rule 64(1)(ii) & (2)(i)(ii) of PDG & TMA (Budget) Rules 2003, each Local Government shall ensure that authorized budget allocations are expended in conformity with the Schedule of Authorized Expenditure and that there must be an appropriation of funds for the purpose. District Officer (Forest) incurred an expenditure of Rs 0.964 million for purchase of peter engine, plants and daily wages employees

12 from the object head “others A-03970” instead of relevant objects mentioned in the table below:

Account Account to be Amount Date Description Charged Charged (Rs) 09.09.16 Daily Labour Charges A-03970 A-01277 70,560 24.12.16 Carriage of Silt D-Chowk A-03970 A-03807 54,230 24.12.16 Carriage of Silt D-Chowk A-03970 A-03807 54,230 24.12.16 Carriage of Silt D-Chowk A-03970 A-03807 54,230 24.12.16 Carriage of Silt D-Chowk A-03970 A-03807 44,306 28.12.16 Carriage of Silt D-Chowk Near Food Godam A-03970 A-03807 32,537 28.12.16 Carriage of Silt D-Chowk A-03970 A-03807 73,135 28.12.16 Purchase of Peter Engine 6HP A-03970 A-09106 46,520 28.12.16 Carriage of silt A-03970 A-03807 57,063 28.12.16 Carriage of silt A-03970 A-03807 44,625 28.12.16 Carriage of silt A-03970 A-03807 21,916 28.12.16 Carriage of silt A-03970 A-03807 12,202 28.12.16 Purchase of plants for D.Chowk A-03970 A-03942 398,895 Total 964,449 Audit held that due to weak internal controls and financial indiscipline the expenditure was charged to the irrelevant head of account. This resulted in an irregular expenditure of Rs 0.964 million. The matter was reported to the PAO / DC in September, 2017. The authority neither furnished the reply nor was DAC meeting convened till the finalization of this Report. Audit recommends regularization of the expenditure. [PDP No.2]

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1.2.3 Internal Control Weaknesses 1.2.3.1 Non imposition of penalty - Rs 26.399 million According to clause 39 of Contract, a penalty @ 1% to 10% is required to be imposed for delayed completion of work. DDOs of following formations awarded various work of construction and supplies to different contractors during the Financial Year 2016-17. The contractors / firms could not complete their work / supplies within stipulated period. The department neither imposed nor recovered amount of penalty from the defaulter contractors. (Rs in million) Sr. Amount of Name of formation PDP No. 10% penalty No. work 1 DCO executed by DO (Roads) 2 15.75 1.575 2 DO (Buildings) 2 106.020 10.602 3 DO (Buildings) 25 140.696 14.069 4 EDO (Health) 02 1.530 0.153 Total 26.399 Audit held that due to weak internal controls penalty was neither imposed nor recovered from the defaulter contractors. This resulted in non imposition and recovery of penalty of Rs 26.399 million. The matter was reported to the PAO / DC in September, 2017 but no reply was furnished. Despite repeated requests, DAC meeting was not convened till the finalization of this Report. Audit recommends recovery of stated amount from contractor. 1.2.3.2 Less deduction of PST – Rs 18 million As per Punjab Revenue Authority Finance Department instruction issued vide No. PRA/22477 dated 25.04.2014 and in the light of Notification No. SO(TAX) 1-2/97 (PT VIII), sales tax @ Rs16% is required to be deducted from the payment made for services rendered w.e.f. July, 2013. District Officer (Buildings) Khushab awarded work of development schemes / repair to different contractors during 2016-17 and made payments of Rs 120 million accordingly. The department deducted provincial sales tax @1% instead of prescribed rates for non-register/non- filers contractors i.e. @16% despite the fact that most of the contractors were not registered with Punjab Revenue Authority. 14

(Rs in million) Total Payment made to PST was to be deducted @ Amount of Income Difference/ contractor 16% from non-filer Tax @ 1% Less recovery 120 19.2 1.2 18 Audit is of the view that due to weak financial controls the PST at prescribed rates was not deducted. This resulted in a loss of revenue of Rs 18 million. The matter was reported to the PAO / DC in September, 2017 but no reply was furnished. Despite repeated requests, DAC meeting was not convened till the finalization of this Report. Audit recommends recovery of PST from the contractors. [PDP No.04] 1.2.3.3 Less deduction of income tax – Rs 3.502 million According to Section 153 (1)(c) of Income Tax Ordinance 2001, every prescribed person making a payment in full or part including a payment by way of advance to a resident person on the execution of a contract shall deduct tax @ 7.5% of the gross amount payable, if the person is a filer and 10% if the person is a non-filer. DO Building Khushab made payment of Rs 120 million to contractors for the execution of development schemes / repair works during 2016-17 and deducted income tax @7.5% instead of 10% from the non-filer contractors as detailed below: (Rs in million) Amount of Income Total Payment made to I Tax was to be deducted @ Difference/ Tax recovered @ 7.5 contractor 10% from non-filer Less recovery % 120 12 9 3 Similarly, DO OFWM made payment of Rs 5.024 million to the contractors for different works during 2016-17 without deduction of income tax of Rs 0.502 million from the contractors. Audit is of the view that due to weak financial controls the income tax was either not or less deducted. This resulted in a loss of revenue of Rs 3.502 million. The matter was reported to the PAO / DC in September, 2017 but no reply was furnished. Despite repeated requests, DAC meeting was not convened till the finalization of this Report.

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Audit recommends recovery of stated amount. [PDP No.03] 1.2.3.4 Non deduction on account of price variation – Rs 3.009 million According to clause 55(I) of contract agreement where any price variation (increase or decrease) to the extent of 5% or more in the price of any of the item takes place after the acceptance of tender and before the completion of contract the amount payable/recoverable shall be adjusted to the actual variation in the cost of item concerned. Drawing and Disbursing Officers of some formations made payment of Rs 3.009 million without watching downward variation in prices of diesel, steel and bitumen at the time of payment to contractor despite the prices of diesel, steel and bitumen were decreased more than 5% during the execution period. Annexure-C (Rs in million) Sr. Name of Formation Account/Items PDP No. Amount No. Bitumen 01 1.270 1 DCO Diesel 06 0.058 2 DO (Buildings) Diesel 21 0.579 Diesel 0.136 01 Steel 0.007 Diesel 0.066 3 DO (Roads) 02 Bitumen 0.753 Diesel 0.065 03 Steel 0.075 Total 3.009 Audit held that due to weak internal controls and financial indiscipline, overpayment was made to contractors. This resulted in an overpayment of Rs 3.009 million. The matter was reported to the PAO / DC in September, 2017 but no reply was furnished. Despite repeated requests, DAC meeting was not convened till the finalization of this Report. Audit recommends recovery of the stated amount. 1.2.3.5 Unauthorized drawl of HRA, CA and HSRA – Rs 2.638 million As per clarification issued by government of the Punjab, Finance Department letter No.FD(M-1)1-15/82-P-I dated 15.1.2000 in case a designated residence is available to the government servant for whom it is meant, cannot draw HRA even if he does not reside in it. Moreover, 16 conveyance allowance is also not admissible during earned leave. As per clarification of government of the Punjab Health Department vide letter No S.O. (A.III-MCW) 9-17/84 12-01-1987, dress/ uniform allowance and mess allowance is not admissible during leave. According to government of Punjab Health Department Letter No.PMU/PHSRP/G.1-06/61/270-340 dated 16th March 2007, PHSRP allowance is payable only when the doctors, para-medic & other staff perform their duties under the PHSRP at RHCs and BHUs. Drawing and Disbursing Officers of various formations of District Khushab made unauthorized payment of Rs 2.638 million on account of house rent, conveyance allowance, HSRA etc. Annexure-D Audit is of the view that due to weak internal controls and financial indiscipline undue payment of allowances was made. This resulted in an unauthorized drawl of allowances for Rs 2.638 million. The matter was reported to the PAO / DC in September, 2017 but no reply was furnished. Despite repeated requests, DAC meeting was not convened till the finalization of this Report. Audit recommends recovery of stated amount. 1.2.3.6 Excess payment due to application of incorrect rates – Rs 1.556 million As per Finance Department’s Notification No.RO (TECH) FD 2- 3/2004 dated 02.08.2004, Chief Engineers shall, on the basis of input rates fixed/notified by Finance Department on its website, fix the rate of each item of work for rough cost estimates/administrative approval and detail estimate for technical sanction. Further, as per para 4.5 (5) of B&R Code, every officer making or ordering payment on behalf of government should satisfy himself that work has been actually done in accordance with the bill submitted. He should inspect personally all the important works before authorizing final payment, and should check the measurement made by his subordinates as per scale laid down. DO (Buildings) made overpayment of Rs 1.556 million on account of incorrect rates of work of razor wire fencing. The department changed the specification and approved rate analysis with inclusion of rate of razor wire over and above the input rates of relevant MRS. Further in this specific case the razor wire was fixed on the MS grill already laid on the top of the wall but rate approved were inclusive of angle iron, concrete 17 and steel bars. Hence the department made excess payment to the contractor. Annexure-E Audit held that due to weak internal controls and financial indiscipline incorrect rates were charged. This resulted in an overpayment of Rs 1.556 million. The matter was reported to the PAO /DC in September, 2017 but no reply was furnished. Despite repeated requests, DAC meeting was not convened till the finalization of this Report. Audit recommends recovery of stated amount from contractor. [PDP No.9, 11 &12] 1.2.3.7 Less recovery of old material – Rs 2.624 million As per contract agreement clause 22, the cost of old material dismantled will be recovered from the contractor at market rate. Further, according to Rule 2.33 of PFR Vol-I, every government servant should realize fully and clearly that he will be held personally responsible for any loss sustained by government though fraud or negligence on his part, and that he will also be held personally responsible for any loss arising from fraud or negligence on the part of any other government servant to the extent to which it may be shown that he contributed to the loss by his own action or negligence. Scrutiny of record of District Officer (Buildings) for the Financial Year 2016-17, revealed that during execution of various development works, contractors were paid for the items dismantling of walls / rooms and structures etc. But the cost of old material was less recovered as compared to the prevailing market rates or not recovered from the contractors amounting to Rs 2.624 million. Annexure-F Audit is of the view that due to weak financial controls and financial indiscipline, recovery at prescribed rates / prevailing rates was not realized. This resulted in non / less recovery of Rs 2.624 million. The matter was reported to the PAO / DC in September, 2017 but no reply was furnished. Despite repeated requests, DAC meeting was not convened till the finalization of this Report. Audit recommends recovery of stated amount. [PDP 10, 16 & 17] 18

1.2.3.8 Loss to government due to purchases of equipments through contractor by paying 20% profit – Rs 1.113 million According to Letter No RO (Tech)FD-18-29/2004 Government of Punjab Finance Department dated 03-03-2005, plant & machinery and other store items like generators, lifts, AC, electric motors and street lights, etc., were required to be purchased from original manufacturer or the authorized dealer instead of through the contractors to avoid 20% profit & overhead charges of contractors. District Officer (Buildings) procured various items of electric appliances, furniture & fixture from the different contractors / suppliers and made payment of Rs 6.677 million during the Financial Year 2016-17. The department made payment of 20% contractor profit to the supplier in violation of instructions ibid. Annexure-G Audit is of the view that due to weak internal and financial control 20% contractor profit was paid. This resulted in a loss of Rs 1.113 million. The matter was reported to the PAO / DC in September, 2017 but no reply was furnished. Despite repeated requests, DAC meeting was not convened till the finalization of this Report. Audit recommends recovery of the stated amount. [PDP No.22] 1.2.3.9 Doubtful drawl of advance - Rs 1.0 million According to rule 2.33 of PFR Vol-I, every government servant should fully realize that he will be held personally responsible for any loss sustained by government through fraud or negligence. MS DHQ Hospital Khushab drew Rs 1.0 million in advance in pursuance of approval of Finance Department, government of the Punjab in order to meet the emergent requirement of repair of machinery & equipment and vehicle of the hospital. Management withdrew the amount in cash from treasury and deposited it into DDO account. Thereafter department withdrew the cash from time to time from the DDO account. The department neither entered the financial transaction in the cash book nor prepared vouched account of the same. In the absence of vouched account, the misappropriation cannot be ruled out.

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Audit is of the view that due to weak internal controls and financial indiscipline, amount was expended without vouched account. This resulted in doubtful drawl of advance of Rs 1.0 million. The matter was reported to the PAO / DC in September, 2017 but no reply was furnished. Despite repeated requests, DAC meeting was not convened till the finalization of this Report. Audit recommends probe into the matter besides fixing of responsibility against the person at fault. [PDP No.45] 1.2.3.10 Non recovery of professional tax – Rs 0.750 million According to section 5 of Punjab Finance Act-1977, every contractor, builder working under the district boundary is liable to pay professional tax at the prescribed rates i.e. Rs 3,000, Rs 5,000 and Rs 10,000 per annum for the work valuing upto Rs 10 million, Rs 50 million and more than Rs 50 million respectively. Scrutiny of the record of the office of District Officer (Buildings) revealed that some contractors were working under building division during the Financial Year 2016-17. The department awarded work to the contractors despite they had not renewed their registration and paid professional tax for the year to the department. The department neither took any action nor recovered the professional tax amounting to Rs 0.750 million in violation of rule ibid. Detail is as under:

Amount Amount Less Type of Tax Rate Category No. of Recoverable Recovered Recovered /Fee Contractors (Rs) (Rs) (Rs) (Rs) Professional Category-C 40 10,000 400,000 0 400,000 Tax Category-D 70 5,000 350,000 0 350,000 Total 750,000 0 750,000 Audit is of the view that due to weak internal controls and financial indiscipline, professional tax was not realized. This resulted in non recovery of professional tax of Rs 750,000. The matter was reported to the PAO / DC in September, 2017 but no reply was furnished. Despite repeated requests, DAC meeting was not convened till the finalization of this Report. Audit recommends recovery of stated amount. [PDP No.1]

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1.2.3.11 Non recovery of social security benefit - Rs 0.724 million According to clause 6 of terms and conditions of appointment letters of employees of education department, the appointees upon regularization shall not be entitled to the payment of 30% social security benefit in lieu of pension or any other pay package, being drawn by them, during the contract period. Drawing & Disbursing Officer of the formations made payment of Rs 0.724 million on account of social security benefit @30% of basic pay to the staff of different scales / categories after regularization of their services w.e.f. 16.04.2016 in violation of rule ibid. Annexure-H Audit held that due to weak internal controls and financial indiscipline social security benefit was not recovered after regularization. This resulted in non recovery of Rs 0.724 million. The matter was reported to the PAO / DC in September, 2017 but no reply was furnished. Despite repeated requests, DAC meeting was not convened till the finalization of this Report. Audit recommends recovery of stated amount from concerned. [PDP No.7, 23] 1.2.4.12 Overpayment for removal of malba – Rs 0.704 million The clause 21 of additional condition of contract agreement read with instruction laid down in preface of each chapter of MRS that the removal of surplus debris, heaps and malba, after execution of work, is the entire responsibility of the contractor and nothing will be paid extra for it. District Officer (Roads), in the execution of development schemes from the funds of SDA account of DCO, incorporate the provision for the payment of removal of malba in technical sanctioned estimate and made payment accordingly during the Financial Year 2016-17. The department made overpayment of Rs 0.704 million for the removal of malba in violation of the criteria ibid. Detail is as under: Name of Contractors Rate Amount Bill # Description Qty Sft work Name (Rs) (Rs) Dismantling and Rehabilitation C.C 9th removing of existing 15225 308.88 47,027 M/s Shadab of road from & road edging Const. Naushehra to Running Scarifying old road Company Uchali road bill surface including 434000 151.42 657,163 removal of debris Total 704,190

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Audit is of the view that due to weak internal controls and financial indiscipline overpayment was made for the removal of malba. This resulted in overpayment of Rs 0.750 million. The matter was reported to the PAO / DC in September, 2017 but no reply was furnished. Despite repeated requests, DAC meeting was not convened till the finalization of this Report. Audit recommends recovery of stated amount. [PDP No.5] 1.2.4.13 Overpayment due to excessive consumption of bricks – Rs 0.602 million According to Sr. 1 of Chapter “Mortar” of Market Rate Schedule, a volume of 0.25 cubic meter of wet material (cement, sand) was required for construction of 1 cubic meter brick masonry. Scrutiny of record of District Officer (OFWM) for the Financial Year 2016-17, it was observed that payment of Rs 0.602 million was made by using 500 bricks instead of 375 in one cubic meter of bricks masonry. Audit held that overpayment was made due to non deduction of 0.25 cubic meter of wet material (cement, sand). Annexure-I Audit held that due to measuring of excess quantity of bricks overpayment was made. This resulted in overpayment of Rs 0.602 million. The matter was reported to the PAO / DC in September, 2017 but no reply was furnished. Despite repeated requests, DAC meeting was not convened till the finalization of this Report. Audit recommends recovery besides fixing of responsibility against the persons at fault. [PDP No.3] 1.2.4.14 Non recovery from the unauthorized occupants of government residences – Rs 0.434 million As per Rule 30(IV) of the Allotment Policy Rule 2002, a government servant occupying a house in an unauthorized and illegal manner will be charged penal rent at 60% of the salary. Principal General Nursing School failed to realize penal rent amounting to Rs 0.434 million from the illegal occupants of other

22 departments residing in premises of General Nursing School as detailed below: Per Present Basic month Amount Name & Designation place of Period Month pay recovery (Rs) posting 60% 07/16 to Dr. M. Saleem M.O DHQ 43890 26434 12 316,008 6/17 Nazar Muhammod == DHO 16340 98041 12 117,648 Senior Clerk Total 433,656 Audit is of the view that due to weak managerial controls recovery of penal rent was not realized. This resulted in non recovery of penal rent of Rs 433,656. The matter was reported to the PAO / DC in September, 2017 but no reply was furnished. Despite repeated requests, DAC meeting was not convened till the finalization of this Report. Audit recommends recovery besides fixing of responsibility against the officers / officials concerned. [PDP No.18]

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1.2.4 Performance 1.2.4.1 Non Recovery of Arrears of Gardens – Rs 1.507 million According to Rule 76 of PDG and TMA (Budget) Rules, 2003 the collecting officers shall ensure that all revenue due is claimed, realized and credited immediately into the local government fund. Assistant Director Seed Farms Khushab failed to realize the arrears of leases auctioned, in the previous years, from the contractors upto the date of current Audit - Rs 1.507 million. Detail is as under: Name of Contractor Auction Remaining year Garden Name Amount (Rs) Amount (Rs) 25 MB 2014-15 910,000 502,476 Raja Gul Garden 2015-16 850,000 635,000 Sultana 2016-17 560,000 17,759 Imtiaz Hussian Garden 2015-16 750,000 352,000 Total 3,070,000 1,507,235 Audit is of the view that due to weak financial and internal controls recovery of arrears were not made within stipulated period. This resulted in non recovery of arrears of Rs 1.507 million. The matter was reported to the PAO / DC in September, 2017 but no reply was furnished. Despite repeated requests, DAC meeting was not convened till the finalization of this Report. Audit stresses for recovery of arrears. [PDP No.1]

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ANNEXURES

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Annexure-A PART-I Memorandum for Departmental Accounts Committee Paras Pertaining to Current Audit Year 2017-18 Sr. PDP Name of Nature of Amount Subject of the Para No. No. formation Para (Rs) GGMHS Unjustified payment of Weak internal 1 2 43,920 Jauharabad Personal Pay control 2 5 DEO (W- Overpayment of GST Recovery 31,452 EE) Doubtful consumption of POL Weak internal 3 6 58,380 Khushab and Repair of transport control Dy. DEO Overpayment of Pay and 4 8 Recovery 254,487 (M-EE), allowances Noorpur Non Deduction of Income Tax 5 9 Thal Recovery 135,996 at source Khushab 6 10 Overpayment of GST Recovery 87,751 Non verification of GST Weak internal 7 11 92,349 invoices control Special Unauthorized purchase from 8 12 Irregularity 771,386 Education Non-active tax payer firm 9 13 School Recovery of GST Recovery 92,349 Khushab Irregular clearance of pending 10 14 Irregularity 70,010 liabilities Weak internal 11 15 Doubtful Repair of vehicle 350,734 control Recovery of Charge 12 16 Recovery 2,808,000 Dy. DEO Allowance MEE Overpayment of Charge 13 18 Recovery 17,500 Allowance Non-utilization of IT labs due Weak internal 14 20 to not appointing IT Teachers control costing million of rupees Loss due to non recovery of Weak internal 15 21 EDO 100,000 school inspection fee control (Education) Non-auction/Non-disposal of 5th Class Examination Weak internal 16 22 Stationary/Raddi Worth control thousands of rupees Non-auction/Non-disposal of 5th Class Examination Weak internal 17 24 Stationary / Raddi Worth control thousands of rupees Weak internal 18 25 DEO (SE) Excess Expenditure 510,079 control Non deposit lapse merit 19 26 Irregularity 38,400 scholarship award 20 27 Irregular expenditure 50,000,000 21 28 Overpayment of GST Recovery 25,500 Dy. DEO Overpayment of Pay and 22 29 Recovery 359,599 (W-EE) allowances 26

Sr. PDP Name of Nature of Amount Subject of the Para No. No. formation Para (Rs) Noor Pur Thal 23 32 Non deposit lapse security Irregularity 164,753 24 33 Unauthorized expenditure Irregularity 50,000 GGHSS Irregular expenditure Khushab 25 34 involving overpayment of Irregularity 140,720 Rs30,254 Payment to Medicine 26 03 Companies without deducting Irregularity 35,500 DTL Report Charges Weak internal 27 04 Non Utilization of Funds 13,217,655 control Excessive expenditure EDO Without deducting discount on Weak internal 28 5 133,200 (Health) local purchase of control medicines Doubtful expenditure on repair Weak internal 29 6 171,814 of vehicle control Doubtful Payment against Weak internal 30 7 expenditure incurred by RHC 333,449 control Padhrar Excessive expenditure Without deducting discount on 31 8 Irregularity 38,983 local purchase of medicines Recovery SMO RHC Non deduction of Income Tax 32 10 Mitha Recovery 5,710 on Doctor’s Share Tiwana Unlawful/ and irregular Weak internal 33 12 37,500 disbursement of salaries control Non-recovery of RHC 34 13 Recovery 156,000 property Rent Doubtful expenditure on repair Weak internal 35 16 138,504 of vehicle control GNS Overpayment of pay & 36 17 Allowances without sanction Recovery 21,248 of leave Non availing the discount of Weak internal 37 19 15% on Purchase of L.P 80,773 RHC, control Medicine Khabbeki Wasteful expenditure on Weak internal 38 123,879 account of X-ray control Irregular payment of previous 39 22 Irregularity 96,000 THQ Noor year liability Pur Unauthorized drawl of 40 23 Irregularity 289,690 Allowance- recovery thereof THQ Unjustified expenditure due to Weak internal 41 24 Hospital 698,380 payment of pending liabilities control Qauidabad THQ Irregular and Doubtful 42 26 Hospital Expenditure for Payment to Irregularity 261,000 Qauidabad Daily Wages 27

Sr. PDP Name of Nature of Amount Subject of the Para No. No. formation Para (Rs) Overpayment of General Sales 43 31 Recovery 143,556 DO Tax (Health) Irregular expenditure of 44 34 Irregularity 73,423 printing of panaflex THQ Irregular purchase of 45 38 Hospital medicines without obtaining Irregularity 386,317 Noshera of 5% performance Guarantee RHC 46 40 Excess Expenditure Recovery 1,729,000 Hadali Weak internal 47 42 RHC Roda Excess Expenditure 995,085 control Irregular payment to Daily 48 44 Irregularity 812,000 DHQ Wages Staff Hospital Weak internal 49 47 Unauthorized Expenditure 5,000,000 control Loss to Government due to Weak internal 50 04 non auction of unserviceable 200,000 control vehicles Un-authorized payment for 51 06 Irregularity 247,508 DO rent (OFWM) Unauthorized Repair Of 52 07 Irregularity 145,508 Government Vehicle Overpayment on account area 53 08 covered by nakkas in the brick Recovery 445,802 work Non-recovery of secured 54 07 Recovery 4,812,000 advances Weak internal 55 8 Loss due to theft of LED 32” 60,000 control Unjustified expenditure on Weak internal 56 9 249,118 entertainment control Doubtful expenditure on repair Weak internal 57 10 110,700 of Furniture and Fixtures control Unjustified expenditure on Weak internal 58 11 repair of Machinery and 174,793 control Equipment Non maintenance of Pass book Weak internal 59 12 DCO / reconciliation of statement of - control SDA Non-deduction of shrinkage 60 13 Recovery 237,132 on earth work Non Approval of Lead Chart Weak internal 61 14 by the Competent Authority 8,310,000 control for Earth work Rs 8.31 million Unauthorized and Doubtful 62 15 Irregularity 854,959 expenditure on Contingency Unjustified payment on Weak internal 63 16 569,973 account of consultancy fee control Non deduction of Sales Tax 64 17 Recovery 91,196 from the Consultants 65 02 DO (Live Overpayment on account of Recovery 36,971 28

Sr. PDP Name of Nature of Amount Subject of the Para No. No. formation Para (Rs) Stock) inadmissible allowances Un-authorized payment of 66 03 Irregularity 11,496 GST on Printing Material Un-Authorized addition of 67 04 Sales Tax on un-registered Irregularity 71,220 firm’s invoices Unauthorized payment on 68 05 account of Transportation of Irregularity 135,430 Goods Weak internal 69 06 Non Surrendering of Savings 4,040,000 control Un-authorized expenditure on 70 01 Irregularity 1,798,298 account of daily laborer 71 03 Irregular payment of POL Irregularity 147,824 DO (Forest) Un-economical purchase of Weak internal 72 04 398,895 plants control Non verification of GST 73 05 Recovery 34,789 invoices Weak internal 74 01 Blockage of Govt. money 2,166,485 DO Social control Welfare Irregular/doubtful repair of 75 02 Irregularity 88,360 vehicle Non realization of Income 76 02 Recovery 198,090 Tax on Auctioned Money Undue favour to defaulter Weak internal 77 03 auction holder control Loss to Govt. due to very low Weak internal 78 04 production of Fruit Gardens control Asstt. Loss to Govt. due to very low Weak internal 79 05 Director production of Wheat, Guwara control Seed Farm etc Jauharabad Non recovery of cost of 80 06 Recovery 543,276 supplies Irregular auction of fruit 81 07 Irregularity gardens Non maintenance of Main Weak internal 82 08 stock/warehouse register of control crop Doubtful expenditure on repair Weak internal 83 04 177,200 of vehicles control Non collection of Deduction DO (Roads) 84 05 of price variation in the next Recovery 964,705 payment 85 06 Irregular Payment of Bitumen Irregularity 44,693,000 Non-forfeiture of Earnest 86 05 Recovery 43,540 Money Overpayment Payment on DO 87 06 account of earth work Recovery 281,534 (Buildings) excavation Overpayment Payment on 88 07 Recovery 584,375 account of brick/stone blast 29

Sr. PDP Name of Nature of Amount Subject of the Para No. No. formation Para (Rs) Cost of Old Material less Weak internal 89 10 602,734 recovered control Irregular payments of steel 90 13 without mandatory quality test 7,322,380 report Overpayment due to Allowing 91 14 Excessive Rate For RCC Recovery 225,804 Work Irregular Expenditure on Raft 92 15 Irregularity 646,971 Strip Foundation Excess Payment on account of 93 18 Recovery 329,500 Gutka /Face bricks Irregular Payments of Steel on 94 19 Irregularity 3,214,000 estimated quantities Excess Payment without 95 20 Recovery 433,573 Provision in TS Estimate Non-deduction of Sales Tax 96 23 Recovery 91,196 from the Consultants Non-deduction of Shrinkage 97 24 Recovery 237,132 on Earth Work

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PART-II [Para 1.1.3] Memorandum for Departmental Accounts Committee Paras Pertaining to Last Audit Year 2016-17 Sr. PDP Name of Nature of Subject of the Para Amount No. No. formation Para Irregular Expenditure on Irregularity 1 1 7.500 Development Schemes Non Production of Internal control 2 4 Professional Tax Paid Record weakness - of Contractor Overpayment to the contractor Recovery 3 5 due to non deduction of 0.423 shrinkage Overpayment Due to Recovery 4 7 1.114 Excessive Use of Steel 5 10 Overpayment for RCC Recovery 0.151 Non-deduction of Sales Tax or Recovery 6 11 non-obtaining of sales tax 0.482 Invoices DO Non-deduction of Sales Tax or Recovery Buildings 7 12 non-obtaining of sales tax 0.197 Invoices Non recovery of 10% Recovery 8 13 0.235 liquidation charges Irregular payment of Irregularity 9 14 2.350 consultancy charges Unauthorized diversions of Irregularity 10 16 0.663 works contingencies Unauthorized expenditure on Irregularity 11 17 account of weather shield 0.156 paint Non Production of Enlistment Internal control 12 20 and renewal fee Paid Record weakness 0 of Contractor Non recovery of auction Recovery 13 27 0.352 money Irregular auction process, Non Irregularity 14 28 0.750 observance of response time Non Transparent auction Internal control 15 29 0 process weakness Undue favour to contractor Internal control 16 30 0.100 Dy. DO nor forfeit of security weakness (Seed Farm Irregular auction of fruit Irregularity 17 31 0 Khushab gardens Internal control 18 32 Non auction of woods 0.100 weakness Non adoption of Internal control 19 34 0 recommended function weakness 20 37 Doubtful drawl of allowance Irregularity 0.023 Non maintenance of Internal control 21 38 0 stock/warehouse register of weakness 31

Sr. PDP Name of Nature of Subject of the Para Amount No. No. formation Para crop Internal control 22 39 Doubtful repair of vehicle 0.099 weakness Doubtful expenditure on Internal control 23 41 0.299 account of repair of machinery weakness Loss to government due to Internal control 24 43 0.454 approval of excessive rates weakness EDO Unauthorized Payment of Irregularity 25 44 0.011 (W&S) Adhoc Allowances 26 45 Khushab Misappropriation Irregularity 0.006 Irregular expenditure on Irregularity 27 46 0.199 account of POL Un-authorized payment of Recovery 28 47 HRA, CA and 5% of Basic 0.220 Pay Un-authorized Drawl of NPA Recovery 29 48 0.126 allowance Unauthorized Payment of Recovery 30 49 0.029 Adhoc Allowances Loss to Govt. due to non- Internal control 31 50 RHC receipt of Performance weakness 0.046 Haddali Security Irregular purchase of Irregularity 32 51 medicines without DTL 0.931 Reports Doubtful purchase of LP Irregularity 33 52 0.375 Medicines 34 53 Overpayment of GST Recovery 0.011 Internal control 35 54 Non-deduction of GST 0.014 weakness Un-authorized payment of Recovery 36 55 HRA, CA and 5% of Basic 0.205 Pay Unauthorized Payment of Recovery 37 56 0.015 Adhoc Allowance Irregular expenditure on Irregularity 38 57 0.282 account of repair of vehicle Loss to Govt. due non-receipt Recovery 39 58 0.041 RHC Mitha of Performance Security Tiwana Purchase of Medicines without Irregularity 40 59 0.199 DTL Reports Doubtful purchase of Irregularity 41 60 0.966 medicines Irregular and doubtful Irregularity 42 62 0.275 purchase of LP Medicines Unauthorized expenditure on Irregularity 43 63 account of Transportation of 0.005 Goods Overpayment on account of Recovery 44 64 0.270 RHC Roda purchase of X-Ray items 45 65 Acceptance of Medicines Internal control 0.692 32

Sr. PDP Name of Nature of Subject of the Para Amount No. No. formation Para Without any delivery challan weakness and inspection report Unauthorized Withdrawal and Irregularity 46 66 Disbursement of funds Prior to 0.692 DTL Reports Defective Purchase of Internal control 47 67 0.140 Medicines Under 10% Budget weakness Doubtful Purchase of Irregularity 48 68 0.210 Medicines Under 15% Budget Sanction of bills beyond Internal control 49 69 0.499 competency weakness Irregular / Unjustified Irregularity 50 70 payment of share to doctors 0.085 receiving NPA Irregular Drawl of pay and Recovery 51 71 0.363 allowances 52 72 Irregular Drawl of TA/DA Irregularity 0.300 Irregular expenditure on Irregularity 53 73 0.499 purchase of medicine Doubtful expenditure on Irregularity 54 74 account of repair of 0.060 Ambulance Doubtful expenditure on Irregularity 55 75 0.239 account of POL Irregular expenditure on Irregularity 56 76 0.013 transportation of goods Non verification of Govt. Internal control 57 77 0.159 Receipt weakness Internal control 58 78 Non deposit of MLC fee 0.005 weakness Doubtful expenditure on Irregularity 59 79 0.588 account of POL Secretary Doubtful expenditure on Irregularity 60 80 0.118 RTA account of Repair of vehicle 61 81 Irregular drawl of allowances Recovery 0.063 62 82 Irregular drawl of Pay Recovery 0.529 Non deduction of liquidity Recovery 63 85 0.169 charges and forfeit of security 64 86 Non deposit of receipt Recovery 0.047 Irregular unjustified payment Irregularity 65 87 of House Rent and 0.106 Conveyance allowance MS THQ Irregular expenditure on Irregularity Hospital 66 account of Purchase of X-ray 0.599 Noor Pur Films Thal Irregular payment of ad-hoc Irregularity 67 90 0.026 allowance 2010 & 2011 Overpayment on Account of Recovery 68 91 HRA & Conveyance 0.106 Allowance 69 92 Irregular expenditure on Irregularity 0.999 33

Sr. PDP Name of Nature of Subject of the Para Amount No. No. formation Para purchase of medicine Non-deduction of Allowances Recovery 70 93 0.023 during leave Non forfeit of security deposit Recovery 71 94 0.048 and black listing firms Irregular Expenditure on Irregularity 72 95 0.307 purchase of equipments DO (Forest) Embezzlement of funds Internal control 73 96 0.113 through over invoicing weakness Unauthorized drawl of Misc Recovery 74 99 0.174 allowances. Excess payment on account of Irregularity 75 100 0.037 X-ray films Unauthorized payment of Irregularity 76 101 Account of transportation of 0.028 goods THQ Loss to Govt. due to non- Recovery 77 102 Hospital imposition of Liquidated 0.089 Quaid Abad Damages Utilization of MSD Budget on Internal control 78 103 0.380 Local Purchase of Medicines weakness Irregular expenditure on day Irregularity 79 104 to day local purchase of 0.545 medicines Non Deduction of Income Tax Recovery 80 105 0.017 On Doctor’s Share EDO Non Forfeiting of Performance Recovery 81 106 0.055 (Health) security Doubtful expenditure on repair Internal control 82 108 of vehicles without weakness 0.270 maintenance of history sheet Non-recovery of lease rent of Recovery 83 120 0.300 petrol pumps Non Collection of Professional Recovery 84 122 0.189 Tax from Contractor Doubtful expenditure on repair Irregularity 85 123 0.557 of vehicle Irregular / un-authentic and Irregularity DO (Roads) 86 124 doubtful expenditure on the 1.174 purchase of POL Non-recovery of the cost of Recovery 87 126 0.101 empty drums of bitumen Non recovery of departmental 88 129 1.768 charges Unauthorized payment of Irregularity development schemes without 89 130 195.533 inspection of district monitoring committee 90 131 Non recovery of penalties Recovery 0.094 EDO Internal control 91 132 (Education) Non surrender of savings 2.207 weakness 34

Sr. PDP Name of Nature of Subject of the Para Amount No. No. formation Para Loss due to overpayment of Recovery 92 133 0.023 TA on retirement Internal control 93 135 Doubtful withdrawal of funds 0.800 weakness Unnecessary expenditure on Internal control purchase of sewing machines weakness 94 137 0.408 without requirement just to lapse of budget Unauthorized expenditure Internal control 95 138 without requirement on weakness 0.273 purchase of Darree/Matts Loss to the government due to Recovery 96 139 Purchase of items at higher 0.048 rates Difference between Bank Internal control 97 140 0.979 Statement and Cash Book weakness Loss due to non recovery of Recovery 98 141 House Rent Allowance and 0.045 Conveyance Allowance Loss to the government due to Internal control 99 142 blockage of scarce financial weakness 1.791 resources Loss to the government due to Internal control 100 143 payment of personal claims of weakness 0.539 officer by the office Loss to the Government due Recovery Non recovery of Room Rent 101 145 DCO 0.090 from Colony Assistant residing in Khushab House Loss to the government due to Irregularity unauthorized Electric 102 146 Connection utilized by Mr. 0.120 Mushtaq Attendant of Khushab House Irregular expenditure on Irregularity 103 147 1.313 unforeseen expenditures Embezzlement of funds by Internal control 104 148 0.158 reducing average of vehicles weakness Un-authorized drawl of Irregularity 105 150 amount for purchase of Sub- 0.176 standard medicine Un-Justified purchase of Internal control 106 151 0.129 computer table weakness Irregular expenditure in Irregularity 107 153 DO Live 0.881 violation of PC-I Stock Non maintenance of Internal control 108 154 0.044 consumption account weakness Loss due to non-recovery of Recovery House Rent Allowance, 5% of 109 156 0.202 Basic pay and Conveyance Allowance 35

Sr. PDP Name of Nature of Subject of the Para Amount No. No. formation Para Non-accountal of purchased Internal control 110 157 0.025 items weakness Non verification of GST Internal control 111 158 0.405 invoices weakness Overpayment on account of Recovery 112 160 0.058 inadmissible allowances Overpayment on account of 113 163 0.434 sand 114 164 Irregular drawl of TA / DA Irregularity 0.373 115 165 Irregular drawl of TA / DA Irregularity 0.311 116 166 Irregular drawl of TA / DA Irregularity 0.393 Loss to Government due to Internal control 117 167 non auction of unserviceable weakness 0.408 vehicles DO OFWM Non Recovery of Unspent Internal control 118 169 0.028 Balance weakness Non completion of schemes 119 171 0.406 within time limit Loss to the Govt. due to non Internal control 120 172 deduction of conveyance weakness 0.023 allowance Irregular Drawl of NPA Recovery 121 173 0.288 allowance Irregular purchase of Irregularity 174 0.499 stationary items Irregular purchase of Irregularity 122 175 0.047 refrigerator Overpayment of SSB Recovery 123 178 0.044 allowance Overpayment of Mess and Recovery 124 179 Uniform Allowance to Head 0.030 Nurse Overpayment of NAB Recovery 125 180 0.060 allowance MS DHQ Excess Payment of 50% Recovery 126 181 0.814 Hospital Adhoc Relief Allowance Non maintenance of Internal control 127 183 0.756 consumption account weakness Loss to the Govt. due to non Recovery 128 187 imposition of penalty on 0.090 defaulter contractors Loss to the Govt. due to non Recovery 129 188 0.070 deduction of LD charges Overpayment on account of Recovery 130 189 0.182 inadmissible allowances Loss due to non-recovery of Recovery House Rent Allowance, 5% of 131 190 0.174 Basic pay and Conveyance Allowance MS THQ Loss to the Govt. due to non Recovery 132 193 0.276 Hospital deduction of LD charges 36

Sr. PDP Name of Nature of Subject of the Para Amount No. No. formation Para Khushab Loss to the Govt. due to Internal control 133 195 acceptance of below shelf life weakness 0.097 medicine Non-obtaining of Performance Recovery 134 198 0.404 Guarantee Un-economical purchase of Internal control furniture due to non- weakness 135 199 0.199 advertisement on PPRA website Irregular expenditure on Irregularity 136 200 account of purchase of others 0.969 and cost of others items Loss to the Govt. due to non Internal control deduction of Conveyance and weakness 137 201 Health Sector Reform 0.320 Allowances etc during earned leave Acceptance of Medicines Internal control 138 203 Without any delivery challan weakness 9.584 and inspection report Over Payment of Adhoc Recovery 139 204 0.139 Relief Allowance 140 205 Non Surrendering of Savings 2.220 Un-authorized payment of pay Recovery 206 1.301 and allowances 141 207 Irregular payment of NPA Recovery 0.366 Non surrendering of savings in Internal control 142 209 0.763 the budget weakness 143 210 DO (Soil Excess expenditure Recovery 0.290 Conservation) Overpayment of annual Recovery 144 213 0.047 increment 145 214 Un-authorized expenditure Irregularity 0.300 Irregular payment on account Irregularity 146 216 2.707 of cash award Misclassification of Internal control 147 218 0.585 DO Expenditure weakness 148 219 (Sports) Unauthorized expenditure Irregularity 0.241 149 220 Doubtful payment Irregularity 0.774 150 222 Doubtful expenditure Irregularity 0.071 151 223 Doubtful expenditure Irregularity 0.524 152 224 Doubtful expenditure Irregularity 0.300 Internal control 153 225 Non-forfeiture of securities 0.103 weakness Govt. receipts not Internal control 154 226 1.630 verified weakness District Non-deduction of Allowances Recovery 155 227 Officer 0.137 during Leave (Health) Un-authorized payment Recovery 156 230 0.032 of pay and allowances Non recovery of pay & Recovery 157 231 0.262 allowances 37

Sr. PDP Name of Nature of Subject of the Para Amount No. No. formation Para Internal control 158 233 Un-justified expenditure 0.895 weakness 159 235 Less deduction of Income Tax Recovery 0.010 Loss due to non auction of Internal control 160 236 0.050 unserviceable stores weakness Non-deduction of Conveyance Internal control 161 237 General 0.051 Allowance weakness Nursing Unjustified payment of Mess Internal control 162 238 School 0.620 Allowance weakness Non-utilization of government Internal control 163 241 2.000 Assets weakness Non reconciliation of Internal control 164 242 0.022 receipt weakness Unauthorized payment of pay Recovery RHC and allowances to the officials 165 243 0.025 Khabeki shifted at other then their headquarter Non deduction of Pay and Recovery 166 244 0.097 Allowances during Leave Unjustified expenditure on Internal control 167 245 0.013 transportation of goods weakness Non supply of medicine Internal control 168 246 0.010 weakness 169 247 Non deposit of receipt Recovery 0.055 Non deduction of Allowances Recovery 0.036 170 248 during Leave RHC Non imposition of Liquidated Recovery 171 249 Padhrar 0.023 damages Unjustified expenditure on Irregularity 172 250 0.080 transportation of goods Internal control 173 251 Unjustified Charging of GST 0.084 weakness Internal control 174 252 Non supply of medicine 0.031 weakness Non Reconciliation of Internal control 175 254 0.499 receipts weakness Non deduction of Allowances Recovery 176 255 0.018 during Leave THQ Non imposition of Liquidated Recovery 177 256 0.068 Hospital damages Noshera Unjustified expenditure on Internal control 178 257 0.130 transportation of goods weakness 179 258 Unjustified Charging of GST Recovery 0.041 Internal control 180 259 Misclassification 0.134 weakness Unauthorized purchase of x- Irregularity 181 260 1.056 ray films

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Annexure-B Detail of expenditure on dismantling and reconstruction of foundation of wall Qty of brick Amount Sr. Vr. work Name of Scheme Date paid No No. dismantled (Rs) in F & P paid Provision of Missing Infrastructure in 1 375 30.12.2016 8542 1,401,341 DHQ Hospital at Jauharabad. Provision of Missing Infrastructure in 2 189 29.12.2016 8708 1,428,573 THQ Hospital at Khushab. Provision of Missing Infrastructure in 3 137 28.11.2016 14998 2,452,173 THQ Hospital at NoorpurThal. Provision of Missing Infrastructure in 4 18 7.12.2016 9116 1,546,899 THQ Hospital at Naushera. Provision of Missing Infrastructure in 5 11 8.9.2016 4719 774,166 THQ Hospital at Quaidabad. Construction of Boundary Wall around 6 401 31.12.2016 8090 1,407,793 DCO Office Complex at Jauharabad. Re-Construction of B/Wall for Nursing 7 402 31.12.2016 3381 549,796 Hostel and School at Jauharabad. Re-construction of Boundary wall of 8 Officers club District Sports Office 3843 643,970 Jauharabad Total 57554 10,204,711 Add Dismantling Cost of Foundation Approximate 25000Cft x2019.60/%Cft 504,900 Total Cost of Foundation Brick work and dismantling 10,709,611

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Annexure-C Detail of price variation on account of bitumen (Rs in million) Rate at Rate at the Qty of Name of the time time of Over Name of Scheme Bitumen Difference Contractor of Tender Abstract payment (M. Ton) (05/2015) (05/2017) Rehabilitation of road M/s Shadab from Naushehra to Construction 329.02 216.99 178.39 38.60 1.270 Uchali road Company Quantity of TST = 917,928 (775928+142000) Price Variation = 917928 /100x79/2204= 329.02 x 3860 = 1,270,017

Price at Price at Name of Tender Date of the the time Amount Price V. No. Date of Variation Scheme Date abstract time of of bill (Rs) tender Payment Rehabilitation of C.C 9th & road from Running Bill 05-2015 05-2017 82.55 79.90 15919582 57,875 Naushehra to dt.12.05.17 Uchali road Detail of price variation on account of diesel Diesel Diesel Price Vr. Amount of Payment price at price at Name of work Difference variation No. bill Date T.S measure (Rs) date ment date Missing infrastructure 125 357 Bedded DHQ Hosp: 26,277,553 30.12.16 82.04 75.22 6.82 152,912 Jauharabad. Missing infrastructure 189 25,750,231 29.12.16 82.04 75.22 6.82 149,843 THQ Hosp: Khushab. Missing infrastructure 18 14,706,533 7.12.16 82.04 75.22 6.82 85,579 THQ Hosp: Naushera Missing infrastructure 137 19,006,182 28.11.16 82.04 75.22 6.82 110,559 THQ Hosp: Noorpur thal Missing infrastructure 11 8,760,881 08.09.16 82.04 75.22 6.82 50,981 THQ Hosp: Qaidabad Civil Dispensary 16 5,085,002 5.12.16 82.04 75.22 6.82 29,590 Warisabad Total 579,464 Detail of price variation on account of diesel Calculation of Diesel Tendering M.B Name No. of Amount Record Tender date base rate Difference Recovery of Running of this Entry Date rate of of in rate (Rs) Scheme Bill Bill Date diesel Diesel PCC 2nd 527176 1-16 83.61 80.79 - 0 labes 3rd 237402 1-16 - 0 in U.C 4th 1580820 3-16 71.12 12.49 35422 th Bjar 5 2775066 4-15 4-16 72.52 11.09 55212 6th 915980 5-16 72.52 11.09 18224 7th 883703 6-16 72.52 11.09 17582 8th 456054 9-16 72.52 11.09 9074 Total 135514

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Detail of price variation on account of steel Calculation of Steel Tendering M.B Name No. of Record Tendering date base rate Difference Recovery of Running Qty. Entry Date rate of of in rate (Rs) Scheme Bill Date diesel Diesel PCC 4th 116 3-16 84000 72.25 11.75 1363 slabs 5th 537 5-16 74.75 9.25 4967 in U.C 6th 78 4-15 9-16 74.00 10.00 780 th Bjar 7 8th Total 7110 Detail of price variation on account of diesel Calculation of Diesel Tendering M.B Name No. of Amount Record Tender date base rate Difference of Running of this Entry Recovery Date rate of of in rate Scheme Bill Bill Date diesel Diesel Daullat Pull in 8th 4413899 3-15 8-16 80.61 72.52 8.09 66447 Roda Detail of price variation on account of bitumen Calculation of Bitumen 79 level Tendering Name M.B No. of Qty. of Record date of Tenderi rate Recovery Runni Qty. bitumen/ Entry base Difference Sche ng Date of (Rs) ng Bill KG Date rate of me diesel Diesel Daull at Pull 8th 109000 33119 3-15 8-16 87.25 64.509 22.74 753,159 in Roda Detail of price variation on account of diesel Calculation of Diesel Tendering M.B Name No. of Amount Record Tender date base rate Recovery of Running of this Entry Difference Date rate of of (Rs) Scheme Bill Bill Date diesel Diesel PCC 3rd 2500000 11-15 83.61 0 0 0 Slabes 5th 37762077 12-15 83.69 0 0 in UC 6th 2135315 4-15 10-16 72.52 11.09 42,484

Ukhli th 11-16 Mohla 7 1148720 72.52 11.09 22,855 Total 65,339

Detail of price variation on account of steel Calculation of Steel Tendering M.B Name No. of Record Tender date base rate Recovery of Running Qty. Entry Difference Date rate of of (Rs) Scheme Bill Date diesel Diesel PCC 5th 3118 4-15 12-15 84.00 81.75 0 0 Slabes in 6th 3860 10-16 73.00 11 42,460 UC Ukhli th Mohla 7 3444 11-16 74.50 9.5 32,718 Total 75178 Grand Total 3,009,103

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Annexure-D Detail of overpayment of HRA, CA and HSRA Sr. Amount Formation Description Nature of payment Period PDP No No. (Rs) HRA during summer 1 1 143,844 Teaching vacations GGMHS Staff CA on the eve of Army 2 2014-17 3 86,907 Jauharabad Public School CA during winter 3 4 66,356 vacations Teaching CA during summer 4 2014-17 17 43,092 Dy.DEO (M- Staff vacations EE) Khushab Teaching 5 CA during earned leave Days 19 32,482 Staff GGHSS Teaching 6 CA during leave 2014-17 31 102,135 Khushab Staff CA and HRSP 7 Employees allowances during 2016-17 09 135,344 RHC Mitha leave Tiwana Sumair HRA having Govt. 8 2016-17 11 34,860 Perveen accommodation CA, Mess and Dress 9 GNS Employees 2016-17 15 182,059 allowance during leave THQ Noor 5% maintenance 10 Doctors Months 21 383,460 Pur charges 5% maintenance 11 Months 23 138,411 THQ Hospital charges Employees Khushab CA and HSRA during 12 Days 24 187,575 leave THQ Hospital CA and HSRA during 13 Employees Days 29 189,900 Qauidabad leave HSRA without 14 Employees 2016-17 32 174,930 entitlement CA having designated 15 DO Health Employees 2016-17 33 184,926 accommodation Para Medical 16 CA during leave 2016-17 35 210,777 Staff HRA and CA having 17 RHC Padhrar Employees designated 2016-17 36 82,656 accommodation THQ Hospital 18 Officials CA during leave 2016-17 39 76,183 Noshera CA and 5% Maintenance charges 19 DHQ Hospital Dr. Khalida - 43 61,712 having designated residence CA having Govt. DO Live 20 Employees accommodation within 2016-17 01 115,920 Stock premises CA and HSRA during 21 RHC Hadali Employees 2016-17 41 4,689 leave Total 2,638,218

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Annexure-E Detail of Excess payment due to application of incorrect rates

Qty of brick work Over Work Rate Rate Name of Scheme Date dismantled Differ description Paid Admissible payment in F&P (Rs) paid Provision of Missing Infrastructure in 30.12.2016 1910 375 250 125 238,750 DHQ Hospital Jauharabad. Provision of Missing Infrastructure in 29.12.2016 1818 375 250 125 227,250 THQ Hospital Razor wire Khushab. fencing Provision of Missing Infrastructure in 7.12.2016 2511 330.62 250 80.62 202,436 THQ Hospital at Naushera Construction of Boundary Wall around DCO Office 31.12.2016 1939 350 250 100 193,900 Complex Jauharabad Provision of Missing Change in Infrastructure in 8.9.2016 5333 126.54 95 31.54 168,203 specification THQ Hospital at Quaidabad. Provision of Non- Missing schedule Infrastructure in 31.12. 16 1910 375 100 275 525,250 items p/f THQ Hospital at razor wire Quaidabad Total 1,555,789

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Annexure-F Detail of less recovery of old material

Amount of Flagged Bricks work Roof tiles RCC Doors/ old flooring Name of Scheme Date dismantle dismantled dismantled windows material dismantled Qty Cft Qty Sft Qty Cft dismantled already Qty Sft recovered Re-Construction of 5-Class Rooms with Verandah in 21-11-16 6358 2850 0 548 0 208,963 GBES, Lukoo. Mohammad Tayyab Re-Construction of 5-Class Rooms with Verandah in 07-12-16 0 4367 0 1223 50 233,294 GGHS, Rangpur. M/S Tiwana Brothers & Co Re-construction of 3-Classrooms with Verandah in GES, 26-12-16 3115 0 1902 0 18 213,573 Botala. Haji Allah Bakhsh Re-Construction of 3-Class Rooms with Verandah in 06-10-16 2639 1701 0 0 15 133,400 GGHS, Katha Saghral. /M. Ijaz Malik Re-Construction of 3-Class Rooms with Verandah in 09-12-16 3359 1470 0 0 14 156,972 GBHS, Gunjial. Malik MushtaqJoyia Re-Construction of 3-Class Rooms with Verandah in 29-12-16 3337 1469 1078 0 15 244,865 GGHS, Khabaki. Malik M. Irshad. Re-Construction of 3-Class Rooms with Verandah in 13-12-16 2019 406 557 0 11 60,385 GBPS, Chak No. 13/AMB. / Malik Ameer Nawaz Re-Construction of 3-Class Room with Verandah in 10-09-16 8019 0 0 221 22 269,600 GBPS, MC No.3, Khushab. Sh. M. Aamir Re-Construction of 3-Class Rooms with Verandah in GGPS, Railway 26-12-16 3031 0 0 318 12 111,866 Station, Quaidabad. /Mian M. Ishfaq Re-Construction of 3-Class Rooms with Verandah in 14-06-16 3496 0 0 0 15 162,400 GGPS, 49/MB. Malik Imran Awan Re-Construction of 2-Class Rooms 19-03-16 1785 0 708 21 8 45,638 with Verandah in 44

GBES, NawanSagoo. /Atta Ullah Re-Construction of 2-Class Rooms with Verandah in 21-11-16 1868 0 0 22 12 17,544 GBES, Chusoo. M. IjazAsghar. Re-Construction of 2-Class Rooms with Verandah in 19-10-16 3914 1462 294 0 15 157,811 GBES, Jaswal. M. Ajmal Re-Construction of 2-Class Rooms with Verandah and Repair in GGPS, 19-12-16 660 40 40 8 0 10,168 Eason Khail (Pelowaince). / M. FayyazAwan Re-Construction of 2-Class Rooms with Verandah in 21-06-17 5316 0 2548 165 37 145,554 GBES, Dhak. Attiq-ur-Rehman Re-Construction of 2-Class Rooms with Verandah and 09-12-16 3105 0 0 283 0 110,309 Repair of GBPS, ThatiSandral. /Malik M. Younas Re-Construction of 2-Class Rooms with Verandah and 19-12-16 1194 824 0 215 18 51,654 Repair in GPS, Sheikhu. / Hafiz Imran Hassan Re-Construction of 2-Class Rooms with Verandah in 06-10-16 74 44 44 0 0 3,163 GBPS, Wari Gujranwala. Ch. NazarHussain Re-Construction of 2-Class Rooms with Verandah in 14-06-17 3133 1234 0 282 12 101,168 GGPS, Chak No. 29/MB. ImdadHussain Re-Construction of 2-Class Rooms with Verandah in 27-10-16 2118 0 0 0 6 72,700 GBPS, No.1, Jughian. / ImtiazSaleem Re-Construction of 2-Class Room with Verandah in 20-04-16 686 0 0 0 7 9,693 GGPS, MC No.2, Khushab. Abdul Rehman Re-Construction of 2-Class Rooms with Verandah in 05-09-16 1405 0 594 27 5 60,366 GGPS, Chussu. Z.H Construction Re-Construction of 2-Class Rooms 06-10-16 1166 1147 0 0 12 129,909 with Verandah and 45

Repair in GGPS, 59/MB. /M/S Waqas Amin Re-Construction of 2-Class Rooms with Verandah in 28-06-16 3076 1245 0 0 13 130,900 GGPS, 57/MB. Khan Mohammad Agral Re-Construction of 2-Class Rooms with Verandah in GGPS, Chak No. 28-09-16 1615 0 594 29 11 80,847 12/MB. M. Naseem Mughal Re-Construction of 2-Class Rooms with Verandah in 10-09-16 2469 0 377 118 10 111,092 GGPS, 62/MB. Jauhar Hussain Re-Construction of 2-Class Rooms with Verandah in 10-09-16 2166 0 1146 0 12 119,600 GBPS, Mangwal. Imran Khan Re-Construction of 2-Class Rooms with Verandah in 14-06-17 694 0 0 67 4 21,925 GBPS, Kamraywala. / Rana Anwar Manj Re-Construction of 1-Class Room with Verandah in 23-09-16 78 0 433 38 9 41,927 GBES, Chak No. 20/MB. /Ch. NazarHussain Re-Construction of 1-Class Room with Verandah in 18-11-16 1708 384 376 15 10 65,704 GGES, Jharkal. Sh. M. Shahid Total 70244 18643 10691 3600 373 3,282,990 Quantity of Bricks 663805.8 66066.131 14967.4 11007.9 /Steel Doors Quantity of Brick 21073.2 2097.3375 534.55 bats Amounts was to be 2655223.2 264264.53 74837 440316 746000 4,180,640 recovered 252878.4 25168.05 6414.6 0 0 284,461 Amount less recovered 1,182,111 Detail of less recovery of old material Qty Vr. Qty of Rate Total Amount Qty of Rate Amount of Amount Name of No. bricks of Amount Amount still 70% of old was to be 30% was to be Scheme & dismantle brick was to be Recovered Recoverabl Bricks bricks recovered brick recovered date d in Cft bats recovered e bats Provision of Missing 375 Infrastructure in dt DHQ Hospital 7033 66462 4,000 265,847 2110 1,200 25,319 291,166 170,900 120,266 30.1 at Jauharabad. 2.16 /Sayyab Engineering Provision of Missing 189 Infrastructure in dt THQ Hospital 7472 70610 4,000 282,442 2242 1,200 26,899 309,341 196,143 113,198 29.1 at Khushab. / 2.16 Sayyab Engineering Provision of 137 Missing dt 10731 101408 4,000 405,632 3219 1,200 38,632 444,263 346,251 98,012 Infrastructure in 28.1 THQ Hospital 1.16 46

at NoorpurThal. /Rana Abdul Qayyum Provision of Missing Infrastructure in 18 dt THQ Hospital 7.12. 6574 62124 4,000 248,497 1972 1,200 23,666 272,164 138,000 134,164 at Naushera. 16 Ch. NazarHussain Construction of Boundary Wall 401 around DCO dt 8537 80675 4,000 322,699 2561 1,200 30,733 353,432 262,260 91,172 Office Complex 31.1 at Jauharabad. 2.16 /ImdadHussain Re-Construction of B/Wall for 402 Nursing Hostel dt 1583 14959 4,000 59,837 475 1,200 5,699 65,536 40,000 25,536 and School at 31.1 Jauharabad.Im 2.16 dad Hussain Re-construction of Boundary wall of Officers 1493 14109 4,000 56,435 448 1,200 5,375 61,810 41,424 20,386 club District Sports Office Jauharabad Total 602,734 Detail of less recovery of old material

Qty of old Similar Amount Rate of grill of square new Grill was to be Amount Name of Vr. Old Grill Amount Date bars approved rate Recovered Less Scheme No. @ 60% of Recovered design 2’-2.5’ charged on account recovered new grill high /Sft of old grill Construction of Boundary Wall 1903 Rft x 2.5’ around DCO 401 31.12. 2016 Rs402/Sft Rs241/Sft 1,147,388 307,800 839,588 (4757 Sft) Office Complex at Jauharabad. Grand Total 2,624,433

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Annexure-G Detail of items purchased from civil work contractor Vr. Name of Amount Date Description Qty Rate No. work (Rs) S/E of 2500 Amp 1 365,000 365,000 changeover Steel Benches 3 seater 28 18,500 518,000 Missing Steel Body Electric water 12.1 infrastructure 13 88,000 1,144,000 189 Cooler 6 THQ Hosp: 1.5 Ton Split Air Khushab. 10 15,900 159,000 Conditioner (Repair) 1.5 Ton Split Air 6 70,000 420,000 Conditioner (Purchase) Steel Benches 3 seater 12 15,000 180,000 Missing Steel Body Electric water 12.1 infrastructure 2 80,000 160,000 18 Cooler 6 THQ Hosp: S/E of main panel board Naushera 2 400,000 800,000 250-Amp. 1.5 Ton Split Air 15 58,000 870,000 Missing Conditioner (Purchase) 11.1 infrastructure 1.5 Ton Split Air 137 10 15,000 150,000 6 THQ Hosp: Conditioner (Repair) Noorpur thal Steel Benches 3 seater 22 25,000 550,000 Steel Body water Cooler 2 65,000 130,000 Missing infrastructure 1.5 Ton Split Air 11 9.16 18 68,415 1,231,479 THQ Hosp: Conditioner (Purchase) Qaidabad Total Amount 6,677,479 Loss on account of 20% Contractor Profit paid(6,677,479 x 100/120)*20% 1,112,913

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Annexure-H Detail of overpayment of social security benefit Sr. Name of Recovery Name of Teacher Designation No. formation (Rs) 1 Muhammad Hussain PTC Teacher 41,496 2 KaleemUllah PTC Teacher 41,496 3 HaseebRaza PTC Teacher 41,496 4 Muhammad Iqbal PTC Teacher 41,496 5 GhulamShabir PTC Teacher 41,496 Dy. DEO 6 Muhammad Naseer PTC Teacher 41,496 (M-EE) 7 JamshaidIqbal PTC Teacher 41,496 Noor Pur 8 ZafarIqbal PTC Teacher 41,496 9 Samar Sultan PTC Teacher 41,496 10 SajarHussain PTC Teacher 41,496 11 Muhammad Aamir PTC Teacher 41,496 12 ArshadRaza PTC Teacher 41,496 13 Fakhara Hayat Store Keeper 30,924 14 Muhammad Imtiaz Akhter Naib Qasid 32,868 15 EDO Muhammad Hammaad Hassan Junior Clerk 39,564 16 Education Faisel Abbas Junior Clerk 45,252 17 Shehzad Aqdas Driver 38,500 18 Muhammad Natiq Driver 38,500 Total 723,560

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Annexure-I Detail of overpayment of bricks Bricks Water Sr. Area in Amount Deduction of Course Mouza Bricks No. meter (Rs) 25% (Rs) No. 1 16880/L 50 DB 934 4,600 27,370 6,843 2 14400/L 50 DB 721 3,000 17,850 4,463 3 11985/R Okhli Mohla 1,233 30,000 177,000 44,250 4 13485/R Hadali 907 38,000 238,260 59,565 Mitha 5 48200/R Tiwana 915 19,800 124,146.00 31,037 6 11000/R Nalli 636 19,000 119,130 29,783 7 77300/L Adhi Sargal 1,091 203,000 1,187,550 296,888 8 30500/L 40 DB 485 11,000 65,450 16,363 9 500/L Rangpur 812 18,000 106,300 26,575 10 88319/L Hadali 925 16,000 100,320 25,080 11 74950/R Hadali 589 17,800 111,606 27,902 12 12208/L Hamoka 564 21,300 133,551 33,388 Total 602,137

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